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HS2 has revealed more than £2bn in costs associated with Rishi Sunak’s decision to downgrade the high-speed rail line.
The UK’s largest infrastructure project announced it had written off £1.1bn in costs incurred during “phase two,” which was intended to connect Birmingham to Manchester until the government scrapped it last year.
In its annual report, HS2 Ltd disclosed a further £1bn in accounting charges related to the project’s reduced ambitions, which will lower its expected future income. Overall, the business reported £2.17bn in one-off costs due to the railway’s scale-back.
Sunak cancelled the second leg of the HS2 project and scaled back plans for London Euston station in October last year during the Conservative party conference in Manchester. This decision, viewed as a political misstep, caused dismay in Manchester, a city that was set to benefit from the new rapid link.
The HS2 project had faced long delays and rising costs, causing its estimated price tag to balloon to £71bn. The government claimed it would save £36bn by scrapping part of the line, with Sunak pledging to reinvest in other rail projects, including Network North, to improve links between northern cities.
Originally planned as a Y-shaped line linking London with Manchester and Yorkshire, HS2 has been progressively scaled back. Boris Johnson’s government cancelled plans for HS2 to reach Leeds in November 2021. The decision to terminate HS2 in Birmingham has been met with anger in regions that were poised to benefit. Labour has stated it would not reverse the decision, with Keir Starmer acknowledging in January that it was “not possible.”
The government’s spending watchdog recently noted that the decision to axe HS2’s second leg is likely to mean higher fares on the west coast mainline from London to Manchester to discourage train travel. HS2 was intended to relieve capacity on the line, but the National Audit Office warned there could be 17% fewer seats on trains between Birmingham and Manchester due to the decision to stop the line in the Midlands.
HS2 attributed £850m of asset write-downs to the cancellation of the Birmingham to Manchester route, meaning the company is “no longer expected to gain an economic benefit from the preparatory work required to build these phases.” This figure does not include the cost of purchasing land and property, which the company hopes to sell later.
The company also reported a loss of £1.07bn from the cancelled phase two leg, including design, preparation of legislation, enabling works, and environmental projects. An additional £95m in costs will arise from winding down the project, such as “remediation” and ensuring safe work stoppage.
In theory, some taxpayer costs could be recouped by redirecting funds to other areas of the rail network, or if a future private or public body revives the Birmingham to Manchester line or the original larger plan for Euston station.
The annual report also disclosed that HS2’s former chief executive, Mark Thurston, was paid £652,569 for his final year, including a £34,345 bonus. Thurston resigned in 2023 after six years. At the time, HS2 was still expected to extend to Crewe and Manchester.
A spokesperson for HS2 stated: “We are required to declare spending on the project that HS2 Ltd is no longer expected to gain any economic benefit from. In this case, losses relate entirely to work delivered on the northern phase of HS2, which was cancelled by the previous government, and the former design of the high-speed station at Euston.”
Shadow transport minister Helen Whately commented: “Cancelling the second leg of HS2 was a difficult decision, but it was the right one. The £36bn saved will make more of a difference as road and rail improvements for communities up and down the country. Or at least would have done, because Labour have now thrown the entire transport pipeline into chaos. Vital transport upgrades look like they’ll be collateral in their mission to trash our legacy.”
The Department for Transport has been approached for comment.
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HS2 reveals £2bn costs from Sunak’s downgrade of rail project

Rachel Reeves will eliminate winter fuel payments for 10 million pensioners to help fund substantial public sector pay increases.
The Chancellor announced plans to save £5.5bn this year, addressing a £22bn shortfall in public finances left by the previous government.
The majority of the savings will fund a £9.4bn pay settlement for public sector workers, excluding a 22% pay rise for junior doctors. One major change includes restricting winter fuel payments to those already receiving means-tested benefits, affecting nearly 10 million pensioners who will lose this benefit for the first time.
Currently, all 11.4 million pensioners receive an extra £200 to help with winter heating costs, with those over 80 receiving £300. The new measures will save £1.4bn this year and £1.5bn next year, reducing the recipients to only 1.5 million households.
Reeves also signalled potential tax increases in her upcoming Budget on 30 October. A Treasury document highlighted that the £5.5bn savings alone would not suffice to balance the books, indicating further fiscal measures are necessary.
The Chancellor’s decision has drawn sharp criticism from former chancellor Jeremy Hunt, who described Labour’s plans as the “biggest betrayal in history by a new chancellor.” Hunt accused Reeves of using a “fictitious black hole” to justify new tax rises, suggesting this undermines political trust.
Labour is also expected to advance the introduction of VAT on private school fees from January 1, preventing early down payments to avoid the 20% tax charge.
Reeves stated that Whitehall’s day-to-day budgets are expected to be £21.9bn higher than previously anticipated, due to increased costs related to asylum claims and illegal immigration, which alone amount to £6.4bn this year. Additional spending on the NHS, Ukraine funding, and infrastructure maintenance has further strained public finances.
Labour will also terminate the Rwanda asylum scheme and cancel the Dilnot reforms, which were designed to allow people to retain more of their savings when paying for care costs.
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Reeves scraps winter fuel payments for 10M pensioners to fund public sector pay rise

More than half a million taxpayers, set to receive HMRC’s simple tax assessments for the first time, are being warned not to ignore them to avoid penalties and missed tax deductions, according to leading audit, tax, and business advisory firm Blick Rothenberg.
Robert Salter, a Director at the firm, stated: “HMRC has recently announced that 560,000 individuals – including 140,000 pensioners – will receive simple tax assessments for the 2023/24 tax year in the coming weeks. Unfortunately, many taxpayers tend to automatically ignore correspondence from HMRC or assume that ‘the tax will take care of itself’ via PAYE or another type of tax withholding.”
He explained: “However, these simple assessments effectively act as tax demands, requiring individuals to proactively make a tax payment to HMRC. Failure to do so could result in penalties and interest on their unpaid tax for not settling the tax position in a timely manner.”
Robert further emphasised: “It is crucial that taxpayers who receive these simple tax assessments verify the calculations prepared by HMRC and the income captured within their assessments. Experience shows that HMRC may not necessarily account for available tax deductions, such as charitable gift aid contributions, pension contributions, or professional subscriptions.”
He added: “If taxpayers pay the tax demanded by the simple assessment without considering potential deductions, they risk overpaying taxes to HMRC. Spending 5 or 10 minutes reviewing the Revenue’s figures can prevent this.”
Robert also noted: “HMRC has always issued a small number of simple assessments each year to capture tax due on income such as investment income, dividends, and state pensions – essentially, income not directly subject to PAYE withholding or collected via a self-assessment tax return.”
He continued: “The number of such cases has increased for 2023/24 due to frozen tax bands, such as the personal tax allowance of £12,570, which has been frozen since April 2021. Additionally, higher interest rates mean that more individuals with modest savings may now be liable to tax on such income. This increases the risk of tax penalties for those who ignore HMRC, but those who are proactive can benefit from tax deductions – a reminder that ‘a stitch in time saves nine’.”
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Taxpayers urged to heed HMRC’s simple tax assessments

The North Sea is approaching “game over territory” after Rachel Reeves pushed forward with an expanded tax raid on oil and gas companies.
On Monday, the Chancellor followed through on Labour’s election pledge to impose harsher taxes on oil companies by increasing the energy profits levy. Reeves announced that the levy, initially introduced by the Conservatives, will now extend for an additional two years, expiring at the end of March 2030, with the headline rate rising from 75 per cent to 78 per cent.
She also abolished an “unjustifiably generous” allowance that permitted companies to deduct a portion of their investments in new oil and gas fields from their tax obligations. This allowance will cease on November 1, though investments made before this date will remain unaffected.
A separate allowance for investment in green energy projects will continue to be deductible from the tax.
The Chancellor’s decision was met with fierce criticism from oil and gas companies, who branded it “reckless, wrong, and economically ruinous for the North Sea.”
Russell Borthwick, chief executive of the Aberdeen & Grampian Chamber of Commerce, representing a significant portion of the industry, said: “The new government is pushing the North Sea dangerously close to ‘game over’ territory, jeopardising our energy transition. Instead of viewing the energy sector as a solution to the UK’s public finance challenges, the Chancellor has chosen to tax the industry into oblivion.”
He added, “This decision will result in £20 billion lost in Treasury revenues, increased reliance on imported oil and gas—which is worse for the planet and the economy—and the potential loss of tens of thousands of jobs.”
Prior to Labour’s election victory earlier this month, Reeves had estimated that the expansion of the windfall tax would generate an additional £10.8bn in revenue. However, analysts have warned that this move could trigger “unintended consequences,” accelerating the decline of the North Sea.
An analysis by Wood Mackenzie previously cautioned that the new tax could prompt oil and gas companies to “freeze investment” until the tax expires, with some companies likely to conclude production on older fields prematurely, withdraw supporting infrastructure, and reduce investments in green technologies such as offshore wind and carbon capture and storage.
Graham Kellas of Wood Mackenzie added that while the new headline tax rate matches that of Norway, the removal of capital allowances and the UK’s frequent rate changes have made the UK appear like a “fiscal wild west,” deterring investors.
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Reeves’ tax raid spells ‘game over’ for North Sea oil and gas

Petrol stations have come under fire after overcharging UK motorists by a staggering £1.6 billion last year, according to the Competition and Markets Authority (CMA).
The regulator’s findings reveal that fuel margins – the difference between the wholesale cost and the pump price – have remained significantly above pre-pandemic levels.
The CMA highlighted that supermarkets were particularly guilty, with their fuel margins roughly double what they were in 2019. This hike in margins cost drivers an additional £1.6 billion in 2023 alone.
Simon Williams from the RAC described the situation as “nothing short of outrageous,” particularly given the reliance many have on their vehicles. “Drivers have every right to feel ripped off, especially knowing there is virtually no market competition between retailers,” he added.
Last year, the CMA’s review of the road fuel market uncovered that competition among petrol stations was insufficient to drive down costs for motorists. Major supermarkets, including Asda, Morrisons, Tesco, and Sainsbury’s, were criticised for treating drivers as “cash cows,” having overcharged them by £900 million in 2022.
To address the issue, the CMA has recommended the introduction of a “pumpwatch” scheme. This initiative would provide real-time fuel price data to drivers via mobile devices and services like Google Maps, potentially saving motorists up to £4.50 per fill-up by making it easier to find cheaper fuel options nearby.
Currently, the CMA is monitoring prices through a voluntary data-sharing scheme. However, only 40% of forecourts have agreed to participate, resulting in incomplete data that is insufficient for use in mapping and navigation applications.
In response, the Government has proposed the Digital Information and Smart Data Bill, aiming to create a comprehensive and compulsory scheme. While this legislation is being developed, the CMA has urged ministers to implement an enhanced interim voluntary scheme to mitigate overcharging in the meantime.
The RAC has also called on Energy Secretary Ed Miliband to expedite the CMA’s recommendations, ensuring that motorists are protected from excessive fuel prices as soon as possible.
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Petrol Stations accused of overcharging drivers by £1.6bn in 2023

For the first time, organisations have access to a workforce across five generations, with Baby Boomers working alongside Gen Z.
While this may present some challenges, there is a huge opportunity to utilise intergenerational learning, and embrace different opinions, knowledge and experiences.
Traditionally, mentoring and learning has been seen as a relationship between older generations, sharing their wisdom and experience to those younger than them. Although this way of learning is still hugely valuable, intergenerational learning, and reverse mentoring, sees different generations teaching and learning from one another. Understanding and supporting the idea that each generation can offer different skills, experiences and learnings, is a vital step in creating a strong workforce and filling skill and knowledge gaps. For both my own company and those that we work with, supporting a multi-generational workforce and encouraging learning from within, has become a well-deserved priority.
Fostering a culture of continuous learning can help build and maintain a workforce that feel empowered. It has been found that those who spend time learning at work are 39% more likely to feel productive and successful and 23% more ready to take on additional responsibilities. In my experience, I have seen how applying intergenerational learning allows employees to fulfil their curiosities in a diverse and engaged manner. Rather than relying on the likes of search engines to get answers, having the means to learn readily available through peer-to-peer communication, produces a workforce that is more eager to participate, whether they are the ones teaching or learning.
There are plenty of other benefits to encouraging intergenerational learning aside from filling knowledge gaps. Having different generations come together and collaborate is an incredibly effective way to encourage strong relationships across age groups and reduce siloes in the workforce. It can be a highly effective way to create a workforce with a strong sense of belonging and reduce feelings of loneliness in the workplace. Offering opportunities for different generations to contribute their knowledge and lead where they are able, but also be advance in areas they are less familiar with, can also support a strong sense of purpose.
As a true advocate for mentoring, I see huge value in reverse mentoring in particular which reverses the conventional learning and mentoring setup. Younger, often more junior employees, take the role of mentors to more senior team members and share fresh perspectives, technological adeptness, and contemporary insights. It can give those who may typically not have a ‘voice’ an opportunity to interact with, and teach, business leaders, managers and C-Suite members.
Harnessing this mentoring technique can help everyone across an organisation grow and develop, while providing individual empowerment and the opportunity to develop soft skills such as communication. Reverse mentoring can also help promote increased transparency across an organisation, encouraging people at every level to speak up on areas they’re keen to develop.
A recent study highlighted that 93% of organisations are concerned about employee retention and providing learning opportunities is currently the number one-way businesses are working to improve this. Reverse mentoring, and intergenerational learning is a hugely effective way to promote development and growth for all, and one which I hope more organisations globally will implement.
Regardless of how companies choose to build a learning culture, it is vital to pick one that ensures all workers across the different generations are engaged and feel supported, to reap the benefits of building a multi-generational workforce.
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Intergenerational Learning is Key for Building a Skilled and Engaged Workforce

Summer is a time when the strain on vehicles increases, as hot weather can cause the engine to overheat, which can have serious consequences. Fixing the consequences of overheating can be expensive, including engine replacement or major repairs.
To avoid overheating problems, keep their vehicles running efficiently, and minimise repair costs, companies with fleets take a number of maintenance measures. We will discuss what these measures are and why engine overheating is dangerous in this article.
Key maintenance activities for vehicles in the summer
The cooling system. Insufficient coolant level is the most common cause of overheating. It is important to make sure that the coolant level is correct and that there are no leaks in the cooling system and that the radiator is clean. If necessary, the cooling system is flushed.
The thermostat, water pump and fan are also checked.
The engine oil and filters. Oil not only lubricates the engine but also helps to cool it. High temperatures can affect the viscosity of the oil, therefore, a check is carried out its level and condition. If the oil level is too low, the engine can overheat.
A dirty air filter can reduce engine power and cause the engine to overheat.  A clogged or faulty fuel filter increases the load on the fuel pump and leads to its breakdown.
A faulty fuel pump can cause the engine temperature to rise. Because the fuel pump is one of the main elements,  which supplies fuel to the engine.
The brake system and tyre condition. In summer, the braking system is subject to greater stress due to heat and dust. Checked the brake fluid level, the condition of the pads and discs, and the tightness of the system.
Summer temperatures can increase the pressure in tyres, so their pressure and condition are checked. Worn tyres increase the risk of punctures and impair handling.
The battery and electrical system. Heat can have a negative impact on the battery, so its condition, charge and terminals are checked.
The condition of the wiring and electrical appliances is also checked.
The air conditioning system is checked – refrigerant level and compressor condition.
Visual inspection. All important components and assemblies of the vehicle are inspected for leaks, damage and other problems.
The dangers of engine overheating
Overheating can cause serious engine damage, such as cylinder deformation, gasket damage and other critical components.

An overheated engine does not work as efficiently as usual, which can lead to reduced power output and poorer dynamic performance.
An overheated engine consumes more fuel.
An overheating engine can cause a loss of power or even stall the engine while driving, which can lead to an accident.
In extreme cases, overheating can cause the engine to catch fire, which is also a serious hazard.

Regular inspection and maintenance of fleets in the summer is crucial to maintain vehicle efficiency and reliability and avoid costly repairs.
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How companies carry out fleet maintenance in the summer. The dangers of engine overheating

Taking the pain out of compliance
With so many moving parts and different perspectives on enforcement across Europe, Arcus Compliance’s ‘hive mind’ approach ensures that each client benefits from the experiences of others.
Lee Bryan shares his Secrets of Success with Business Matters.
What made you start Arcus Compliance – did you want to rock the status quo or was it a gap in the marketplace that you could fill?
I had seen other compliance providers fail in their offering and felt that by combining the regulatory knowledge with an old-school approach to customer service we would have the winning formula.
What is your USP
Personally, I’d say tenacity. I’ve failed more times than I’ve succeeded, but I pushed forward with new ventures regardless. As a business, I’ve always maintained that we must offer the best customer service and deliver on our promises.
What are your brand values?
Efficiency, Consistency, Reliability and Transparency
Do your values define your decision-making process?
Yes, very much so. Anything we do needs to be efficient and scalable. We ensure that the client is aware of any limitations and risk.
Is team culture integral to Arcus Compliance?
Most definitely. We recruit team members with a similar outlook and personality to ensure the culture of the business is maintained
What do you do to go the extra mile to show your team you appreciate them?
Ongoing training opportunities to develop, two bonuses a year, international team building trips, flexible hours to suit their family commitments and our commitment to keeping the work environment fun and fresh.

In terms of your messaging do you think you talk directly to your consumers in a clear fashion?

Yes. One of our values is transparency, so we always look to understand their commercial aspirations first. Then we build a compliance strategy that maps that and allows them to market their products without the fear of enforcement for non-compliant products.
What’s your take on inflation and interest rates – are you going to pass that on to your customers or let your margins take a hit and reward customer loyalty in these tougher times?
No. We offer a retained service that acts as an extension of their company. We have no plans to increase our pricing due to inflation.
How often do you assess the data you pull in and address your KPIs and why?
Our data is assessed constantly, owing to the various moving parts within compliance. It’s essential that we keep our finger on the pulse of any regulatory changes and communicate them to our clients asap.
Is tech playing a much larger part in your day-to-day running of your company?
Yes, we have invested heavily in proprietary software. Having our own software is not only a USP but allows us to handle tasks in a fraction of the time it would take a human to handle them. It means we keep our head count low as well as our costs. Our aim is to provide an outsourced compliance department at a fraction of the cost that it would be ‘in-house’.
What is your attitude to your competitors?
We don’t concern ourselves with our competitors. We focus on our swim-lane only and aim to get better than we were previously. Competition then becomes irrelevant.
Do you have any advice for anyone starting out in business?
Expect the road to be bumpy, then when a problem comes along you’re not as fazed by it as if you were expecting plain sailing. Make sure you have enough cash to cover costs while you are building your reputation, and that reputation is going to take you 3-5 years to build.
It can be a lonely and pressured place to be as the lead decision maker of the business. What do you do to relax, recharge and hone your focus?
I learned transcendental meditation shortly after starting the business. It was a game- changer for me. It made me realise I wasn’t great at everything and that I should farm out anything that I wasn’t great at and focus on what I was good at. TM still plays a part in my life today and keeps me relaxed and focused.
Do you believe in the 12-week work method or do you make much longer planning strategies?
No, it’s not something I follow. I’m pretty much a workaholic and just go hard at it all the time. I don’t employ any schedules or best practices to growing the business, although I am at the point where I am bringing in the staff that focus on that, to allow me to be the aggressive sales person that I am.

What is your company’s eco strategy?
We don’t have an eco-strategy per se. We are of course mindful of our corporate responsibilities but as a consultancy our impact on the environment is low, so we don’t have to worry too much. We help our clients understand their waste obligations and ensure that appropriate programmes are in place for that.
What three things do you hope to have in place within the next 12 months?
1 We are bringing in an MD to improve efficiencies within the business and are looking forward to that.
2) We will be launching some new software that will improve our clients’ ability to manage their compliance files more easily
3) We will be taking our services into the US cannabis sector to help improve compliance in that market.

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Secrets of Success: Lee Bryan, CEO of Arcus Compliance

The financial technology powerhouse Revolut has finally obtained a long-anticipated banking licence from the Bank of England’s Prudential Regulation Authority (PRA), enhancing its capability to compete with traditional high street banks and providing improved consumer protections for millions of UK customers.
Revolut’s pursuit of this licence spanned three years, significantly longer than usual due to a series of hurdles encountered during the application process. This landmark decision by the regulator allows the app-based company to begin offering loans, overdrafts, and other lending products to its nine million UK customers. Additionally, once Revolut launches its banking services, it will be covered by the UK’s Financial Services Compensation Scheme (FSCS), protecting customer deposits up to £85,000.
Nik Storonsky, co-founder and CEO of the London-based firm, celebrated this achievement, calling it an “important milestone”. Valued at $33 billion during its last fundraising round in 2021, Revolut is considered one of the crown jewels of Britain’s fintech sector.
Founded nine years ago by Storonsky and Vlad Yatsenko as a money transfer and foreign exchange service, Revolut has rapidly expanded to serve over 45 million retail customers in 38 countries, offering a wide range of services from cryptocurrency trading to insurance. Last year, the company reported revenues of £1.8 billion and pre-tax profits of £437.8 million.
Despite holding a European banking licence from the Bank of Lithuania, allowing it to operate within the EU, Revolut’s growth ambitions in its home market and beyond have been hampered by the absence of a UK licence. Without it, Revolut has been unable to compete directly with British banks, operating instead under an e-money licence that required using third-party banks to hold customer funds and prevented lending to UK customers. Consequently, Revolut has not been part of the FSCS.
Revolut’s application has been under intense scrutiny in the City, particularly due to its rapid growth. One significant obstacle was the company’s accounting practices, which drew attention when its auditor, BDO, raised concerns over nearly £477 million of its 2021 revenues, resulting in a qualified opinion on its accounts. These issues were later resolved in the 2022 report.
Further complicating matters was Revolut’s complex ownership structure, which it recently simplified to facilitate the licence approval. Now, Revolut has been granted “authorisation with restrictions,” initiating a “mobilisation” period to build the necessary systems and processes to operate fully as a bank. During this period, typically lasting about a year, Revolut can only hold £50,000 in total customer deposits and will continue to operate under e-money regulations in the UK.
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Revolut secures UK banking licence after three-year wait